The figure above shows a firm in monopolistic competition. If all fir

1.If all firms in a monopolistically competitive industry faced the same demand and cost curves pictured in the above figure, 选项： A: new firms will enter the industry. B: some firms will exit the industry. C: their economic profit would be zero. D: they would each produce 60 units.

2.Which of the following is characteristic of oligopoly, but NOT of monopolistic competition? 选项： A、The choices made by one firm have a significant effect on other firms. B、Each firm faces a downward-sloping demand curve. C、Firms are profit-maximizers. D、There is more than one firm in the industry.

3.occurs when circumstances have allowed several large firms to have all or Most of the sales in an industry. 选项： A: Collusion B: A monopoly C: An oligopoly D: A cartel

4.Under perfect competition, the short-run market supply curve is most accurately described by which of the following statements The market short-run supply curve is the:（）选项： A、average of the quantities at each price along the marginal cost curve for all firms in a given industry. B、sum of the quantities at each price along the average total cost curve for all firms in a given industry. C、sum of the quantities at each price along the marginal cost curves for all firms in a given industry.

5.Refer to Figure 8.8.2 above. Starting with the increase in demand, the cost and supply curves will shift, indicating that this is: 选项： A:a constant-cost industry. B:An increasing-cost industry. C:a decreasing-cost industry. D:a monopolistic industry.

6.In a perfectly competitive industry, the short-run supply curve for the market is the:（）选项： A、marginal cost curve above the average variable cost curve. B、sum of the individual supply curves for all firms in the industry. C、C. average variable cost curve above the marginal cost curve.

7.If there are a large number of firms in a monopolistically competitive industry 选项： A:the country in which the firms are located can be expected to export the goods they produce. B:long-run profit will be equal to zero. C:there will be a small number of firms that are very large and the rest will be very small. D:the firms will converge production on a standardized product. E:there will be barriers to entry that prevent additional firms from entering the industry.

8. Mr. Smith is hired as a consultant to a firm evaluating entry into a perfectly competitive industry. Mr. Smith determined that at the projected level of output the price would be $100, the average variable cost would be $50, average total cost would be $80, and marginal cost would be $70. Mr. Smith’s report will include the following remarks: 选项： A: Firms are leaving the industry. B: Firms should enter the market. C: Firms should not enter the market. D: None of the answers are correct.

9.Which of the following is not a feature of perfectly competitive market? 选项： A、There are a large number of firms in the industry. B、Firms produce very different products. C、There are no barriers to entry in this market. D、Firms could earn positive profit in the short run.

10. In microeconomics, the distinguishing characteristic of the long run on the supply side is that 选项： A: Only supply factors determine price and output. B: Only demand factors determine price and output. C: Firms are not allowed to enter or exit the industry. D: All inputs are variable.

11.If all else holds constant in periods of rising prices and inventory levels:（）选项： A、FIFO firms have higher debt to equity ratios than LIFO firms do. B、FIFO firms will have greater stockholder’s equity than LIFO finns do. C、LIFO firms have higher gross profit margins than FIFO firms do.

12.What factors could lead to a gap between the average costs of established firms and potential entrants?( )选项： A:Firms already in the industry may control a crucial input. B:Firms already in the industry may be able to borrow investment funds at lower interest rates. C:Firms already in the industry may have access to superior production technologies. D:Firms already in the industry may have built plants in the most desirable locations.

13.The data in the above table indicate that when the price level is 100, 选项： A、firms have unexpectedly low inventories, so prices will rise. B、 inventories are at levels planned by firms. C、 firms will plan to decrease the level of output. D、 firms have unexpectedly high inventories, so prices fall.

14. The data in the above table indicate that when the price level is 120, 选项： A、 firms have unexpectedly low inventories, so prices will rise. B、 inventories are at levels planned by firms. C、 firms will plan to increase the level of output. D、 firms have unexpectedly high inventories, so prices fall.

15. When firms in monopolistic competition are making an economic profit, firms will 选项： A、 enter the industry, and demand will increase for the original firms. B、 exit the industry, and demand will increase for the firms that remain. C、 exit the industry, and demand will decrease for the firms that remain. D、 enter the industry, and demand will decrease for the original firms.

16.Firms in perfectly competitive markets and firms operating in a market characterized by monopolistic competition have several things in common. Which of the following is least likely one of them? Both: A. face perfectly elastic demand curves. B. operate in markets that have low or no barriers to entry. C. maximize economic profit.

17.Switching costs, access to distribution channels, economies of scale, large numbers of competing firms, and slow industry growth are some of the entry barriers that may affect the threat of new entrants to an industry. 选项： A:正确 B:错误

18.Which of the following statements is NOT true about Canada’s economy? 选项： A:Canada’s economy is dominated by agriculture, manufacturing and high-tech industry. B:Canada is very strong in automotive industry. C:Most of Canadian tech firms are small-sized firms. D:Canada is the world’s tenth-largest economy in 2018.

19.Which of the following statements is NOT true about Canada’s economy? 选项： A:Canada is the world’s tenth-largest economy in 2018. B:Canada’s economy is dominated by agriculture, manufacturing and high-tech industry. C:Canada is very strong in automotive industry. D:Most of Canadian tech firms are small-sized firms.

20.Firms will enter and/or exit, and in long run equilibrium we expect the following condition(s) will hold: 选项： A、firms produce where MC = P B、firms make zero economic profits C、P = ATC for the typical firm D、all of the above

21.International trade based on external scale economies in both countries is likely to be carried out by a() 选项： A、relatively large number of price competing firms. B、relatively small number of price competing firms. C、relatively small number of competing oligopolists. D、monopoly firms in each country/industry. E、None of the above.

22.A monopolistically competitive market 选项： A、 usually has too many firms, reducing the economic profit of each firm to zero. B、usually has too few firms, reducing the product variety for consumers. C、 may have too many or too few firms, and the government can intervene to achieve the optimal number of firms. D、 may have too many or too few firms, but the government can do little to rectify the situation.

23.Pizza and beer are complementary goods for consumers in a local market. The beer industry, which has constant marginal cost, is perfectly competitive and is now in long run equilibrium. If the market price of pizza permanently decreases, which of the following statements is correct about the beer market in the short run?选项： A:The market price of beer falls and each firm produces less beer. B:The market price of beer does not change, but the quantity increases because new firms enter the beer industry. C:The market price of beer does not change, but the quantity decreases because some firms exit the industry D:The market price of beer rises and each firm produces more beer